PORTLAND, Ore., April 28, 2026 /PRNewswire/ -- Pacific West Bancorp ("PWBK"), the holding company of Pacific West Bank ("PWB" or "Bank"), today reported net income of $155 thousand, or $0.06 per diluted share, for the quarter ended March 31, 2026. Results for the quarter reflect $425 thousand of merger-related expenses incurred during the quarter and recorded in March 2026. Excluding these expenses, net income would have been approximately $455 thousand for the quarter, or $0.17 per diluted share.
First Quarter and Year-Over-Year Highlights:
- Total assets were $403.4 million at March 31, 2026, compared to $386.0 million at December 31, 2025, an increase of $17.3 million or 4.5% year-to-date and an increase of $60.6 million or 17.7% year-over-year.
- Deposits totaled $359.8 million and grew by $17.6 million or 5.1% compared to $342.2 million at December 31, 2025, and by $69.2 million or 23.8% year-over-year.
- Net interest income for the quarter before provision for credit losses was comparable to the prior quarter at $3.1 million and increased $576 thousand or 23.3% compared to the quarter ended March 31, 2025.
- Non-interest income for the quarter was $348 thousand, an increase of $58 thousand or 20% over the prior quarter and an increase of $122 thousand or 54% year-over-year.
- Provision for credit losses for the quarter was $63 thousand compared to $248 thousand in the prior quarter. The allowance for credit losses on loans totaled $3.3 million, approximately 1.22% of gross loans, as of March 31, 2026.
- Net income for the first quarter was $155 thousand, an increase of $29 thousand or 23% compared to the prior quarter and an increase of $74 thousand or 91% compared to the quarter ended March 31, 2025.
"We are excited about the enhanced product offerings and expanded resources that our merger with First Security Bank of Washington, announced in February, will bring to our customers and communities," said Jason Wessling President and CEO of PWBK.
"First quarter results reflect the strength of our core banking franchise, with solid deposit growth and an expansion in both net interest income and non-interest income. During the quarter, the Bank also surpassed $400 million in total assets, marking an important growth milestone. While these underlying trends demonstrate continued momentum across our business, reported results were impacted by expenses associated with the previously announced merger. We remain committed to disciplined execution and to supporting the clients and communities we serve as we move forward," continued Wessling.
In addition to the $359.8 million deposits reported, the Bank had $39.3 million deposits held off-balance sheet in sweep accounts for a total of $399.1 million of gross client deposits, an increase of $46.2 million or 13%, year-to-date and an increase of $108.5 million or 37%, year-over-year. This contributes to the Bank's strong liquidity position and presents opportunities for additional asset allocation strategies. Additionally, increases in deposit balances and underlying activity positively contributed to non-interest income growth of $58 thousand quarter to quarter. The increase in interest expense during the quarter of $164 thousand or 8.9% was a result of significant deposit growth during the quarter.
Total loans ended the quarter at $270.1 million, down $6.9 million year-to-date. The decline was the result of strategic decisions to reduce portfolio risk and scheduled maturities. Despite the decline in total loans, loan interest income was comparable to the prior quarter due to ongoing contractual repricing and management's focus on maintaining credit quality and appropriate pricing in the current rate environment.
Total non-interest expense was elevated during March 2026 due to $425 thousand of merger-related expenses. Excluding the merger expenses, net income would have been approximately $455 thousand for the quarter, an increase of $329 thousand compared to the prior quarter and an increase of $374 thousand over the quarter ended March 31, 2025, reflecting improvement in core earnings.
About Pacific West Bancorp: Information about Pacific West Bancorp's stock is available through the over-the-counter marketplace at www.otcmarkets.com (symbol: PWBK).
Pacific West Bank was formed in 2004 by local businesspeople to deliver loan and deposit product solutions through experienced and professional bankers to businesses, nonprofits, professionals, and individuals. The Bank serves the greater Portland/ Vancouver Metro area with offices strategically located in Downtown Portland, Lake Oswego, West Linn, and Vancouver, WA.
Certain statements in this release may be deemed to be "forward-looking statements." Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement.
Media Contact:
Jason Wessling
President and Chief Executive Officer
(503) 912-2101
Jwessling@bankpacificwest.com
Balance Sheets (amounts in 000s, except per share data and ratios) | |||||||||||||||||||||||||||||||||
For the Quarter Ended | % Change | % Change | |||||||||||||||||||||||||||||||
3/31/2026 | 12/31/2025 | QoQ | 3/31/2025 | YoY | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||
Cash & Due from Banks | $ 77,399 | $ 53,516 | 44.6 % | $ 23,403 | 230.7 % | ||||||||||||||||||||||||||||
Investments - CD | - | - | 0.0 % | 498 | (100.0 %) | ||||||||||||||||||||||||||||
Investments - Debt Securities AFS | 39,612 | 39,308 | 0.8 % | 42,852 | (7.6 %) | ||||||||||||||||||||||||||||
Investments – Debt Securities HTM | 5,997 | 5,997 | 0.0 % | 7,747 | (22.6 %) | ||||||||||||||||||||||||||||
Allowance for Credit Losses - HTM Invest. | (132) | (174) | (24.1 %) | (248) | (46.8 %) | ||||||||||||||||||||||||||||
Investments - Debt Securities, Net | 45,477 | 45,131 | 0.8 % | 50,351 | (9.7 %) | ||||||||||||||||||||||||||||
Investments - Correspondent Stock | 458 | 424 | 8.0 % | 1,352 | (66.1 %) | ||||||||||||||||||||||||||||
Loans Receivable, Net of Fees | 269,629 | 276,566 | (2.5 %) | 256,272 | 5.2 % | ||||||||||||||||||||||||||||
Allowance for Credit Losses | (3,294) | (3,192) | 3.2 % | (3,554) | (7.3 %) | ||||||||||||||||||||||||||||
Loans Receivable, Net | 266,335 | 273,374 | (2.6 %) | 252,718 | 5.4 % | ||||||||||||||||||||||||||||
Premises and Equipment, Net | 4,629 | 4,900 | (5.5 %) | 5,135 | (9.9 %) | ||||||||||||||||||||||||||||
Deferred Tax Asset, Net | 1,540 | 1,584 | (2.8 %) | 1,917 | (19.7 %) | ||||||||||||||||||||||||||||
BOLI | 4,733 | 4,692 | 0.9 % | 4,567 | 3.6 % | ||||||||||||||||||||||||||||
Other Assets | 2,788 | 2,411 | 15.6 % | 2,840 | (1.8 %) | ||||||||||||||||||||||||||||
Total Assets | $ 403,359 | $ 386,032 | 4.5 % | $ 342,781 | 17.7 % | ||||||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||||||||
Deposits | $ 359,842 | $ 342,244 | 5.1 % | $ 290,678 | 23.8 % | ||||||||||||||||||||||||||||
Borrowed Funds | 5,039 | 5,042 | (0.1 %) | 14,601 | (65.5 %) | ||||||||||||||||||||||||||||
Other Liabilities | 2,735 | 3,093 | (11.6 %) | 3,266 | (16.3 %) | ||||||||||||||||||||||||||||
Total Liabilities | 367,616 | 350,379 | 4.9 % | 308,545 | 19.1 % | ||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | 35,743 | 35,653 | 0.3 % | 34,236 | 4.4 % | ||||||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ 403,359 | $ 386,032 | 4.5 % | $ 342,781 | 17.7 % | ||||||||||||||||||||||||||||
Shares Outstanding at End-of-Period | 2,705,631 | 2,697,153 | 2,694,129 | ||||||||||||||||||||||||||||||
Book Value Per Share | $ 13.21 | $ 13.22 | $ 12.71 | ||||||||||||||||||||||||||||||
Allowance for Credit Losses to Total Loans and HTM | 1.24 % | 1.19 % | 1.44 % | ||||||||||||||||||||||||||||||
Non-performing Assets (Non-accrual Loans and OREO) | $ 7,878 | $ 7,963 | $ 880 | ||||||||||||||||||||||||||||||
Leverage Ratio | 9.03 % | 9.80 % | 10.52 % | ||||||||||||||||||||||||||||||
Statements of Net Income (amounts in 000s, except per share data and ratios) | |||||||||||||||||||||||||||||||||
For the Quarter Ended | Year to Date | ||||||||||||||||||||||||||||||||
3/31/2026 | 12/31/2025 | % Change | 3/31/2026 | 3/31/2025 | % Change | ||||||||||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||||||||
Loan Interest Income | $ 3,931 | $ 4,011 | (2.0 %) | $ 3,931 | $ 3,622 | 8.5 % | |||||||||||||||||||||||||||
Investments & Due from Banks | 1,060 | 799 | 32.7 % | 1,060 | 703 | 50.8 % | |||||||||||||||||||||||||||
Loan Fee Income | 78 | 73 | 6.8 % | 78 | 56 | 39.3 % | |||||||||||||||||||||||||||
Total Interest Income | 5,069 | 4,883 | 3.8 % | 5,069 | 4,381 | 15.7 % | |||||||||||||||||||||||||||
INTEREST EXPENSE | 2,016 | 1,852 | 8.9 % | 2,016 | 1,904 | 5.9 % | |||||||||||||||||||||||||||
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 3,053 | 3,031 | 0.7 % | 3,053 | 2,477 | 23.3 % | |||||||||||||||||||||||||||
PROVISION FOR CREDIT LOSSES | 63 | 248 | (74.6 %) | 63 | - | NM | |||||||||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 2,990 | 2,783 | 7.4 % | 2,990 | 2,477 | 20.7 % | |||||||||||||||||||||||||||
NON-INTEREST INCOME | 348 | 290 | 20.0 % | 348 | 226 | 54.0 % | |||||||||||||||||||||||||||
NON-INTEREST EXPENSE | 3,118 | 2,752 | 13.3 % | 3,118 | 2,567 | 21.5 % | |||||||||||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 220 | 321 | (31.5 %) | 220 | 136 | 61.8 % | |||||||||||||||||||||||||||
PROVISION FOR INCOME TAXES | 65 | 195 | (66.7 %) | 65 | 55 | 18.2 % | |||||||||||||||||||||||||||
NET INCOME | $ 155 | $ 126 | 23.0 % | $ 155 | $ 81 | 91.4 % | |||||||||||||||||||||||||||
Earnings Per Share - Basic | $ 0.06 | $ 0.05 | $ 0.06 | $ 0.03 | |||||||||||||||||||||||||||||
Earnings Per Share - Diluted | $ 0.06 | $ 0.05 | $ 0.06 | $ 0.03 | |||||||||||||||||||||||||||||
Return on Average Equity | 1.75 % | 1.40 % | 1.75 % | 0.96 % | |||||||||||||||||||||||||||||
Return on Average Assets | 0.16 % | 0.13 % | 0.16 % | 0.10 % | |||||||||||||||||||||||||||||
Net Interest Margin | 3.16 % | 3.37 % | 3.16 % | 3.10 % | |||||||||||||||||||||||||||||
Efficiency Ratio | 92 % | 88 % | 92 % | 95 % | |||||||||||||||||||||||||||||
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SOURCE Pacific West Bancorp
